GoPro (GPRO) stock plunged 9.09% in pre-market trading on Thursday, marking a sharp reversal from its recent meme stock-driven rally. This significant downturn comes on the heels of a volatile trading period where GoPro shares had surged dramatically, driven by retail investor enthusiasm reminiscent of the 2021 meme stock frenzy.
The action camera maker had been caught up in a new wave of speculative trading, with its stock skyrocketing by 12% during regular trading on Wednesday. However, the enthusiasm appears to be waning rapidly. Analysts attribute the wild swings in GoPro's stock price to the resurgence of meme stock trading, fueled by retail investor enthusiasm and a "risk-on" market sentiment. This phenomenon has been amplified by the strength in tech stocks and a rebounding cryptocurrency market.
GoPro is not alone in this meme stock resurgence. Other companies such as Opendoor Technologies, Kohl's, and Krispy Kreme have also experienced similar sharp moves this week. Experts warn that such rallies are often disconnected from company fundamentals and can reverse violently, as evidenced by GoPro's current pre-market performance. The rapid rise and fall of GoPro's stock price underscores the volatile nature of meme stock trading and serves as a reminder to investors about the risks associated with such speculative investments.
